TrueChannel

Understanding TrueChannel

• The TrueChannel indicator provides traders with a better understanding of real price movement channels along with volatility analysis.
• Unlike standard channel indicators like the Donchian Channel, TrueChannel utilizes unique principles to deliver more accurate trading signals.
• TrueChannel captures moments when price jumps between channels, allowing for timely trading opportunities. 📈

How TrueChannel Works

• The middle line of the TrueChannel consists of horizontal segments that follow the arithmetic mean of price points.
• Each segment is constructed until the variance of price points exceeds a critical value, which assists in identifying significant price movements.
• The number of points for plotting segments varies, depending on market conditions and user-defined settings like Backstep and Depth.

Utilizing TrueChannel in Trading

• TrueChannel can be applied in both intra-channel and breakout strategies, making it versatile for different trading styles.
• In an intra-channel strategy, traders open orders when the price rebounds from channel borders.
• For breakout strategies, orders are opened upon price movement beyond the defined channel boundaries.

Indicator Settings

• TrueChannel allows customization of settings such as price type (Close, Open, High, Low), Backstep, Depth, and channel width factor.
• These customizable settings provide flexibility for traders to adjust the indicator according to their specific trading needs.
• Implementing proper settings can help in minimizing risks by allowing easy placement of StopLoss orders. 🛡️

Advantages of TrueChannel

• TrueChannel filters out insignificant price movements, focusing on statistical approaches for more reliable readings.
• The indicator reduces lag, enabling quicker response times to price changes.
• It provides a simplified and visually comprehensible method for identifying price channels, beneficial for both beginners and experienced traders.